This is a biggest poser in a U.S. economy

Will Trump reappoint Fed Chair Janet Yellen?

Who killed inflation?

It’s a many obscure problem in a U.S. economy today. Even Federal Reserve leaders are scratching their heads.

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Normally in a healthy economy, as stagnation goes down, workers acquire some-more in their paychecks and prices for products go adult — ideally some-more than 2% annually.

But that’s not happening, notwithstanding a really low, 4.2% stagnation rate. Since 2012, acceleration has surfaced 2% usually dual times.

“We don’t know what’s going on with inflation,” Stanley Fischer, who late from his No. 2 post during a Federal Reserve final week, told CNBC.

On Sunday, Fed Chair Janet Yellen said her “best guess” is that stubbornly low acceleration won’t insist most longer. In September, she called it “more of a mystery” than anything else.

Related: Mnuchin to Congress: Cut taxes or marketplace will dive

That kind of ambiguity from Fischer and Yellen is unusual.

“It’s singular that a Federal Reserve admits it doesn’t know what it doesn’t know,” says Joseph Brusuelas, arch economist during RSM, an accounting firm. After a financial crisis, “we don’t have a good grasp on a causes of inflation.”

Low acceleration is a warning pointer for something worse: Deflation, when prices and salary go down.

Too most acceleration can be corrected. But too most deflation is really tough to fix. Just ask Japan: It’s been stranded for decades with low prices and wages.

Related: We found Trump’s ideal collect for Fed Chair

This isn’t only some wonky speak either. Low acceleration plays out in a really genuine way.

1. Customers start to trust that prices won’t — or shouldn’t — go up.

2. That creates it formidable for companies to clear lifting prices.

3. If companies can’t lift prices, it’s tough to clear lifting employees’ wages.

4. Meager salary expansion creates Americans some-more demure to spend their hard-earned cash.

5. The economy slows as consumer spending, that creates adult a infancy of U.S. mercantile growth, flags.

Related: Yellen expects healthy acceleration to return

Experts list a few reasons given low acceleration competence be persisting. But they straightforwardly acknowledge it’s only as obscure to them as it is to Yellen and other leaders.

Technology, globalization, low oil prices, a miss of job skills in demand, a decrease of labor unions and workers’ productivity all minister to low acceleration to varying degrees.

New trends are adding to a brew too, experts say.

Despite all a talk of mountainous health caring premiums, prices for all forms of medical — medical devices, sanatorium services, alloy visits — have been going down given a Affordable Care Act, or Obamacare, was passed.

However, some medical prices, like those for sanatorium services, were streamer down before Obamacare.

For years, employers had their collect of workers after a Great Recession given stagnation was so high. They didn’t need to offer aloft wages.

Related: Trump faces large preference on Fed chief

Conversely, workers didn’t have many pursuit options during and shortly after a Great Recession. They had to take what they could get.

That overarching trend isn’t loyal currently — workers have a top palm now. But it’s tough to change aged habits.

“Businesses competence start to comprehend that they’re losing out by not lifting salary adequate to hire,” says Gus Faucher, an economist during PNC Financial. “Workers are a small bit scarred by what happened by a recession, so they’re demure to ask for salary increases.”

There was a flutter of wish in September: Wages rose 2.9%, a best boost all year and a third uninterrupted month of gains. Wages rose by a same volume final December, that during a time was a best given 2009.

But final Dec was also a cautionary tale. After salary expansion strike 2.9%, it mysteriously drifted behind down for months.

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